HTX, Formerly Known as Huobi, Withdraws Application for Crypto Exchange in Hong Kong

Hong Kong-based HTX Withdraws License Application

Hong Kong-based cryptocurrency exchange HTX, formerly known as Huobi Global, recently withdrew its application for a license, as reported on the Securities and Futures Commission website. The exchange is backed by China-born entrepreneur Justin Sun, and no reasons for the withdrawal have been disclosed.

Regulatory Update on Virtual Asset Trading Platforms in Hong Kong

The Securities and Futures Commission website includes a list informing the public of the regulatory status of virtual asset trading platforms operating in Hong Kong. The list indicates that license applications have been returned, refused, or withdrawn.

Challenges Faced by HTX

HTX and its sister exchange Poloniex have faced challenges in the past, including a loss of $125 million from its hot wallet after a hacker pilfered a wide assortment of over 175 different tokens from the exchange. Despite these challenges, the owner, Justin Sun, reassured customers that deposits at both HTX and Poloniex were “100% safe” and that the platforms have recovered from the hack.

According to Sun, both platforms have resumed user withdrawals for the vast majority of their assets, with HTX having resumed 95% of assets and Poloniex having resumed around 85% in terms of the USD value of the assets.

Crypto.com Enters the Fray

In a related development, Crypto.com, a Singapore-based cryptocurrency exchange, has applied for a license to operate in Hong Kong. The company’s application to the Hong Kong SFC seeks approval to operate as a virtual asset trading platform (VATP).